Like many things, the answer is "it depends". How old are you? Do you already have an emergency fund? 401(k) and/or Roth IRA? Are you max'ing them out? If you

Like many things, the answer is "it depends". How old are you? Do you already have an emergency fund? 401(k) and/or Roth IRA? Are you max'ing them out? If you have both tax-advantaged and tax-free accounts, you also need to determine the best place to hold the investments that you do purchase. I'd recommend reading through the "Managing a windfall" article [0] on the Bogleheads wiki. You'd probably be well-served by browsing through the wiki and perusing the forums as well. There are plenty of inquiries there by people in similar situations -- and there are some top-notch experts on those forums. [0]: http://www.bogleheads.org/wiki/Managing_a_windfall http://www.bogleheads.org/wiki/Managing_a_windfall